Investing.com - The pound was almost unchanged against the U.S. dollar in quiet trade on Wednesday, as demand for sterling remained supported by the outcome of last week's vote on Scottish independence, while Tuesday's U.S. manufacturing data continued to boost the greenback.
GBP/USD hit 1.6414 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6394, inching up 0.03%.
Cable was likely to find support at 1.6287, the low of September 22 and resistance at 1.6526, the high of September 19.
The pound remained supported as investor focus returned to the outlook for U.K. monetary policy in the wake of last Thursday’s Scottish independence referendum.
Sterling's gains were limited however after data on Tuesday showed that U.K. public sector borrowing increased from a year earlier in August, while a separate report showed that U.K. mortgage approvals fell unexpectedly in August, although the underlying trend was stable.
Meanwhile, demand for the greenback remained underpinned after data on Tuesday showed that the U.S. manufacturing sector expanded in September, matching the rate of growth seen in the previous month, which was the strongest in over four years.
Sterling was near two-year highs against the euro, with EUR/GBP down 0.18% at 0.7825.
The euro was hit after a report earlier showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September.
The Ifo economic institute's business climate index fell to 104.7 from 106.3 in August. It was the lowest level since April 2013 and much weaker than economists’ forecasts for 105.7.
Separately, European Central Bank President Mario Draghi said the bank will keep its monetary policy "accommodative for as long as needed, and will use every tool at its disposal to fight deflation.